Conserve 2[1]

CONSERVE New Ventures India Investor Forum Mumbai November 2-3, 2006

Conserve: an Eco-Entrepreneurship NGO “Eco-entrepreneurship” is a grassroots level, market based bottom up approach enabling the individual poor to improve her/ his livelihood through creation of earning opportunities, using traditional arts and skills on urban waste to make goods that meet market standards expectations and demand, with least capital and operating costs and existent infrastructure.

Conserve–an Eco Entrepreneurship NGO Brief History: • 1998: Established as a non-profit with a mandate to work in the areas of waste Management and Energy Efficiency • 2002-2003 : technology, product and skills development; testing of eco-entrepreneurship model • 2004: launch of EE-Model through the creation of an SPV – Conserve HRP

Conserve HRP: an Eco-Entrepreneurship Company Brief History: • Registered as a proprietorship in 2004 • 100 % Exports • Products receive great market response from the International Market. • First year (04-05) turnover of Rs 5.5 Million. • Second year (05-06) turnover of Rs 9.2 Million • Third Year - Sales tie up with a 2100 store strong European retail chain happens.

What is the Product ? HRP- A more eco-friendly alternative to leather !!

What is the Product ? HRP- More attractive than leather or even faux leather !!

More trendier than leather !! Name Zinta Colour Bricklane Lining Polyester Trim Type Faux Leather Dimensions L33 x H21 x W10 cm

Uses no colours or dyes!! Name Colour Lining Trim Type Dimensions

Jameel Bindu, Pakistan Polyester Faux Leather L35 x H20 x W8 cm

More Versatile!! Name Bushra L, S Colour Beach, Bindu Lining Polyester Trim Type ` Faux Leather Dimensions L31xH20xW7.5 cm

More Indian!! Name Di Colour Pink, White, Blue, Lining Polyester Trim Type Beads Dimensions L20 x H13 x W1 cm

More Durable!! Name Colour Sole

Cleo Swiss Alps Leather

Less Wasteful!! Name Colour Components Dimensions

Butterfly Swiss Alps HRP, assorted Beads L43 cm

And as strong!! Name Swing Colour Mall Components Dimensions

HRP, Embroidery L 80 cm

HRP – Untapped applications!! • • • • • •

Low Cost Floor Tiles Shower Curtains Wall paper Raincoats Umbrellas And so many more ….

Market Analysis • Target market: “Cultural Creatives” Age Group : 16 to 40 • Cultural Creatives buy based on their beliefs: – – – – – –

They appreciate things that are well-made They procure original arts or crafts. They consume natural, organic and free-range foods They recycle and re-use. Cultural creatives want to hear the ‘whole story’ behind the product. They carefully investigate products before purchasing. In Europe the size of this rapidly growi

• European market is in the region of 80-90 Million people. What about America, India, China ?

Market Analysis- Strengths • Process of Sheet manufacture is unique and under patent • Needs extensive back-end infrastructure to collect waste polythene • Most people chary of working in this area

Market AnalysisWeaknesses: • Process largely manual at present • Inefficiency exists in the sheet conversion process

Social and Environmental Impact • Income and Employment generation for 300 persons at present • Potential to involve many more thousands • 1 ton of waste plastic picked up and renewed every month • Potential to recycle many more tons

Marketing and Sales Activities Marketing and sales strategy:• • • •

Participation in International Trade Fairs Active web presence (try Google) Word of mouth- uniqueness helps Extensive (and free) international media coverage: – TV Media- CNNI; BBC; CBS; France Channel 5; Arte and more – Print media: Liberation; The Independent and many more

Marketing and Sales Activities Sales projections: • 90% Increase in Sales turnover every year for the past two years of operations. • Big buyers are only now noticing this product • Tie up realized with a 2100 store strong European Chain

Marketing and Sales Activities Keys to success Constant development of new DesignsFashion market is fickle • Unceasing innovation • Development of new Product lines and applications

Operations • Social Operations: – Collection and Sorting Unit – Sheet making units

• Business operations: – Sampling unit – In house Fabrication – External Fabrication

Operations Competitive Advantages • Large collection network in place • First mover edge over others • Tie up with 2100 stores ensures operations of scale

Operations Scalability • No dearth of raw Material • No shortage of collection manpower • Business process amenable to mass production due to our innovative technology and patented process

Operations Research and Development • Need to automate the sheet making process to increase output Which is why we are here!!

The proposal Funding request for Automation of Sheet Making technology and subsequent commercialization for expansion of Bag Making Business

Computerized sheet Design

Technological Pathway

Colour Sorting Machine

Waste Polybags

Automatic Sheet Layering Section

Hi Pressure Washing Tank with Gravity Separation

Floating Plastic Ladled out to Drying Chamber (Pneumatic)

Centrifug e

Gravity Collector Effluent Treatment to Recycle waste water Back Sludge Removal Rejected Product

Heat And Press Chamber (PID Controlled Precise Temperatur e set Machine) with Proximity Sensor Sheet based Curing And Medium Press duty Roller/ Section Continuous Press

Computerized Cutting and Planning Machine

Computerized online testing apparatus. (NDT and Ultrasonic measurements) Accepted Product finishing and despatching

The rationale for the Request: • • • •

Pilot scale technology and business model stands proven Output – the HRP sheet – meets market needs and demand Products meet market standards and compete effectively New applications e.g. footwear, has a greater potential market than the current range of Fashion accessories.

Organization and Personnel Key managers: • Shalabh Ahuja, B.E & M.Sc.(Hons), Bits Pilani – 20 years of entrepreneurial experience • Anita Ahuja, M.A. (Hons.) Delhi University, Published writer, artist and the creative head and social heart of the project.

Financial Data PROFIT & LOSS STATEMENT S. No. A B C D E F

2007-2008 YEAR 1 Capacity 60% Revenue FromSales 51,000,000 Cost of Sales 24,696,000 Gross Profit (A-B) 26,304,000 Less Operating Expenses 4,702,000 Op. profit (Before Tax & Dep.) 21,602,000 Less: Interest & Depr. 3,972,520 Nett Profit Before Tax 17,629,480 Gross Profit Margin 51.58% Nett Profit 34.57% Head

2008-2009 YEAR 2 70% 59,500,000 28,565,600 30,934,400 5,387,400 25,547,000 4,148,220 21,398,780 51.99% 35.96%

2009-2010 2010-2011 2011-2012 YEAR 3 YEAR 4 YEAR 5 80% 90% 95% 68,000,000 76,500,000 80,750,000 32,472,160 36,419,376 38,661,314 35,527,840 40,080,624 42,088,686 6,184,380 7,112,706 8,195,842 29,343,460 32,967,918 33,892,844 3,733,500 3,318,780 2,904,060 25,609,960 29,649,138 30,988,784 52.25% 52.39% 52.12% 37.66% 38.76% 38.38%

Financial Data Funds required for sheet manufacturing and their use: 2. 3. 4. 5.

R&D Land & Building: Rs Plant & Eq. Rs Margin Money for W/c Rs

Rs

25 Lakhs 62 Lakhs 130 Lakhs 49 Lakhs

TOTAL 266 Lakhs Amount of Rs 35 Lakhs already stands invested.

Financial Data Type of financing sought: • Debt/Equity Potential exits for investor • Sale of Equity on IPO

CONSERVE But we are looking for a partner who would not want to exit!! Thank you! Anita and Shalabh Ahuja +91 98914 02027